CALF_News_December_2020_January_2021

6 CALF News • December 2020 | January 2021 • www.calfnews.net But as we shift to look forward out the windshield, we’re faced with some ques- tions: Where do we go from here? How do we use the lessons learned in 2020 as we chart a course for the industry? And what changes do we need to make to assure success for those in it? Conversations with top executives of three leading industry organizations show that although the road ahead looks promising, there are still significant potholes that must be navigated. First, the good news. “While it’s been a tough year for producers, we’re starting to see things bounce back,” says Greg Hanes, CEO of the Cattlemen’s Beef Promotion and Research Board (CBB).“There are so many positive signs out there.” “As we look at 2021 and beyond, I’m very optimistic about where we’re headed,” says Colin Woodall, CEO of the National Cattlemen’s Beef Associa- tion (NCBA). “There are a lot of positives out there, a lot of reasons to be confident going forward,” says Dan Halstrom, president and CEO of the U.S. Meat Export Fed- eration (USMEF).“Things are headed in the right direction.” The Horizon A focus on exports is one of the par- ticularly bright spots on the beef indus- try’s horizon. Although beef exports were down 8 percent over the first six months, it’s estimated that by the end of the year, losses will be slimmed to 3 to 4 percent. “Chilled beef exports went through the roof in August,” Halstrom says. Beef exports increased to Taiwan 7,400 metric tons, to Korea 27,000 metric tons and to China – which while huge is still an enigmatic market – 3,900 metric tons. Some trade agreements, such as the United States – Korea Free Trade Agreement (KORUS) and the new U.S.-Japan Trade Agreement, have helped. “Now we’re on the same playing field with Australia in the Japanese market,” Halstrom says.“We’re getting a lot of the market share back now.” November and December beef exports are expected to be significantly higher. Halstrom says what’s really exciting, though, is what is still to come.“The real rebound will take place in 2021,” he says. “We’re projecting a 10 percent increase in beef exports for the year over 2020 – and it will approach a new record [which was achieved in 2018]. “We have the supply, so things are aligned well,” Halstrom adds.“Some of our competitors [particularly Australia] aren’t in the same shape.” Digital platforms, which are booming in some countries like Korea, Japan and China, are helping in the improvements. “I think it’s a trend we’re going to see going forward,” Halstrom says. Because many of USMEF’s efforts were previously based on in-person dem- onstrations, their focus with meat buyers has shifted to online platforms – such as Zoom and Microsoft Teams – where possible.“It’s really jump-started our efforts,” he says. Halstrom is even seeing potential in some of the previ- ously untapped markets, such as Africa. Last year, Africa purchased $25 million of U.S. beef, mostly in variety meats. That may seem minimal, but “these kinds of emerging markets add value to and help maximize the profitability of the U.S. beef carcass,” he says. Some efforts to boost U.S. beef internationally are supported by the Beef Checkoff. CBB’s Greg Hanes says tap- ping all of the possible export markets will make a huge difference to U.S. cattle producers. About 96 percent of the world’s consumers live outside U.S. borders, he points out, and the middle class in many of those markets is increas- ing rapidly. What’s Next? Lessons Learned from 2020 Dan Halstrom By Walt Barnhart Contributing Editor Hindsight is 20/20, and most people are thankful hindsight is where 2020 has gone. Few would challenge the idea that the year would best be viewed as a distant point in our rear-view mirrors. WHERE DO WE GO FROM HERE?